Utah Solar Power Rebates, Tax Credits, and Incentives

The Red Desert of Utah

Solar Legislator Score:

Ah, the “Greatest Snow on Earth.” Not a skier? Utah is also home to Moab, Zion & Arches National Parks, Bryce Canyon the north rim of the Grand Canyon, Lake Powell and more. Oh yeah, and the Great Salt Lake too. With all of those great things to see outdoors, Utah needs renewable solar power to keep looking good. What has the Utah legislature done so far to promote clean energy? Have a look…

STATE LEGISLATION

In 2007, the Utah legislature passed an amendment to the 2001 act that created a tax credit for installing clean energy generation equipment. What did this amendment do? Well, it extended the expiration date on the existing act (check out the details below under Rebates and Incentives).

Governor Jon Huntsman Jr. has taken some steps in the right direction too. He has joined the Western Governors Association Clean Energy Initiative. what’s that, you ask? One of its main goals is to produce 30,000 Megawatts of clean energy by 2015. That’s a great start. Most of Utah’s efforts have focused on wind energy though. Let’s ramp up some solar power too!

NET-METERING

In 2002, Utah set up rules that require all investor-owned electric utilities and cooperative utilities to offer net-metering to customers with renewable energy systems that generate up to 25kW (municipal utilities are exempt from this rule). The real drawback to the regulation is that it is capped at 0.1% of the 2001 peak operating capacity for each utility. With energy use increasing, that’s not going to let too many people in on the plan. Under the net-metering deal, you get a credit on your next monthly bill for any excess power you generate in a given month, for up to a year. If at the end of the year, you’ve still generated more power than you use, you give the power company a nice little gift. Keep in mind though that your gift is also saving the planet, so don’t let the net-metering policy discourage you from installing your solar system now.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

The Utah Department of Natural Resources is home to information about the Renewable Energy Systems Tax Credit. Utah residents can take a tax credit for 25% of the cost of installing a solar system at home (capped at $2,000). If that’s more than your tax liability, you can spread the credit over as many as four years. Corporate customers can take a tax credit for 10% of the cost of a system that generates more than 660 kW (capped at $50,000).

Until 2009, energy companies and commercial customers do not have to pay sales tax on renewable energy generation equipment, under the Renewable Energy Sales Tax Exemption.

The City of St. George< offers a great rebate of $2,000/kW AC generated from solar or wind power. The residential rebate is capped at $6,000, but that’s perfect for your 3kW system at home. Commercial customers are eligible for a rebate of up to $20,000.

Rocky Mountain Power (a Pacificorp subsidiary) offers a similar rebate of $2.00/watt AC. Their rebate is also capped at $6,000 for residential customers, but goes up to $30,000 for commercial customers. Hurry though, this rebate runs out on January 31, 2008.

Have a look at the details of the rebates and incentives that are available in Utah:
Corporate Tax Credit

* Renewable Energy Systems Tax Credit (Corporate)

Personal Tax Credit

* Renewable Energy Systems Tax Credit (Personal)

Sales Tax Exemption

* Renewable Energy Sales Tax Exemption

Utility Rebate Program

* City of St. George – Solar and Wind Rebate Program

* Rocky Mountain Power – Solar Incentive Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

It’s time to install that 3kW solar electricity system you’ve been thinking about. In Salt Lake City, you’ll need to shell out about $49,500, but you do get $2,000 tax credits from both the state and federal governments. If you’re a typical customer using about 1,300kWh each month, your solar system should pay for itself in about 25 years since the state has a Great solar rating (assuming a rate of $0.0781/kWh with Pacificorp). While your system is paying for itself, you’ll also be saving over $880 each year on your utility bills. Your savings should grow too since rates will jump to about $0.08/kWh in 5 years and $0.121/kWh in 25 years. Even better, you’ll be keeping over 297 tons of greenhouse gasses out of the atmosphere; that’s like planting 872 trees or taking 52 cars off the road. Check out these other important details and benefits:

• 550 square feet of roof area required
• Estimated property value increase of $10,520
• Estimated utility savings over 25 years of $22,072

CONSENSUS

Utah is feeling the pressure from its neighboring states, like Nevada, California, Oregon, and New Mexico. Governor Huntsman and the legislature are starting to take some steps toward using renewable energy. It’s time to get to work on clean solar power too. That could really help Utah stay clean well into the future.

Click here to have multiple solar installers bid to upgrade your Utah home or business.